In: Accounting
Current Attempt in Progress
The statement of financial position of Sage Hill Limited follows for the current year, 2020:
SAGE HILL
LIMITED Statement of Financial Position December 31, 2020 |
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Current assets | $146,300 | Current liabilities | $106,700 | |||
Investments | 94,600 | Long-term liabilities | 187,000 | |||
Property, plant, and equipment | 233,200 | Shareholders’ equity | 257,400 | |||
Intangible assets | 35,200 | |||||
Other assets | 41,800 | |||||
$551,100 | $551,100 |
The following additional information is available:
1. | Current Assets include the following: bank account with an overdraft balance of $16,500; inventory with a FIFO cost of $95,700 and a net realizable value of $93,500; accounts receivable of $72,600 less allowance for doubtful accounts of $3,300. | |
2. | Investments include the following: a mortgage receivable from parent company $66,000, due in 2025; FV-NI investments held for trading with a cost of $11,000 and a fair value of $13,200; FV-OCI investments with a cost of $16,500 and a fair value of $15,400. | |
3. | Property, Plant and Equipment include the following: land $26,400; buildings $478,500 less accumulated depreciation of $319,000; vehicles $86,900less accumulated depreciation of $53,900; land held for future use $14,300. | |
4. | Intangible assets include the following:patents net of accumulated amortization of $35,200. | |
5. | Other assets include the following: customer deposits of $7,700, unearned revenue of $3,300, goodwill $48,400 and accumulated other comprehensive income (loss) of $(4,400). | |
6. | Current Liabilities include the following: pension obligation of $59,400, interest payable of $4,400; salaries and wages payable of $8,800; accounts payable $34,100. | |
7. | Long-term Liabilities include the following:demand bank loan of $82,500; mortgage payable $104,500 of which $7,700 is due in the next year. | |
8. | Shareholders’ Equity has 1,100 preferred shares (33,000 authorized) which were issued at an average price of $75 per share, and an unlimited number of authorized common shares with 60,500 shares issued at an average price of $1 per share, retained earnings of $114,400. |
Prepare a statement of financial position in good form.
(List Current Assets in order of liquidity. List
Property, Plant and Equipment in order of Land, Buildings and
Vehicles.)